Official Intervention In The Foreign Exchange Market
Download Official Intervention In The Foreign Exchange Market full books in PDF, epub, and Kindle. Read online free Official Intervention In The Foreign Exchange Market ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
| Author | : Gustavo Adler |
| Publisher | : International Monetary Fund |
| Total Pages | : 67 |
| Release | : 2021-02-19 |
| Genre | : Business & Economics |
| ISBN | : 1513566679 |
Foreign exchange intervention (FXI) is a highly debated topic. Yet, comprehensive and comparable data on FXI is hard to find. This paper provides a new dataset of FXI covering a large number of countries over the period 2000-20 at monthly and quarterly frequencies. It includes publicly available data for about 40 countries and carefully constructed proxies for 122 countries. Proxies are focused on both spot and derivative transactions that alter the central bank’s foreign currency position and account for a wide range of central bank operations, including vis-à-vis residents, the first proxy to do so to our knowledge. The paper discusses the merits of the new proxy relative to coarser measures traditionally used like the change in reserves, and potential definitional differences with published data. The paper also presents stylized facts using our newly constructed FXI proxies.
| Author | : Lucio Sarno |
| Publisher | : |
| Total Pages | : 344 |
| Release | : 2002 |
| Genre | : Business & Economics |
| ISBN | : |
| Author | : Romain Lafarguette |
| Publisher | : International Monetary Fund |
| Total Pages | : 33 |
| Release | : 2021-02-12 |
| Genre | : Business & Economics |
| ISBN | : 1513569406 |
This paper presents a rule for foreign exchange interventions (FXI), designed to preserve financial stability in floating exchange rate arrangements. The FXI rule addresses a market failure: the absence of hedging solution for tail exchange rate risk in the market (i.e. high volatility). Market impairment or overshoot of exchange rate between two equilibria could generate high volatility and threaten financial stability due to unhedged exposure to exchange rate risk in the economy. The rule uses the concept of Value at Risk (VaR) to define FXI triggers. While it provides to the market a hedge against tail risk, the rule allows the exchange rate to smoothly adjust to new equilibria. In addition, the rule is budget neutral over the medium term, encourages a prudent risk management in the market, and is more resilient to speculative attacks than other rules, such as fixed-volatility rules. The empirical methodology is backtested on Banco Mexico’s FXIs data between 2008 and 2016.
| Author | : Michael D. Bordo |
| Publisher | : University of Chicago Press |
| Total Pages | : 453 |
| Release | : 2015-03-02 |
| Genre | : Business & Economics |
| ISBN | : 022605151X |
During the twentieth century, foreign-exchange intervention was sometimes used in an attempt to solve the fundamental trilemma of international finance, which holds that countries cannot simultaneously pursue independent monetary policies, stabilize their exchange rates, and benefit from free cross-border financial flows. Drawing on a trove of previously confidential data, Strained Relations reveals the evolution of US policy regarding currency market intervention, and its interaction with monetary policy. The authors consider how foreign-exchange intervention was affected by changing economic and institutional circumstances—most notably the abandonment of the international gold standard—and how political and bureaucratic factors affected this aspect of public policy.
| Author | : Gustavo Adler |
| Publisher | : International Monetary Fund |
| Total Pages | : 37 |
| Release | : 2016-04-12 |
| Genre | : Business & Economics |
| ISBN | : 148433230X |
The accumulation of large foreign asset positions by many central banks through sustained foreign exchange (FX) intervention has raised questions about its associated fiscal costs. This paper clarifies conceptual issues regarding how to measure these costs both from an ex-post and an ex-ante (relevant for decision making) perspective, and estimates both marginal and total costs for 73 countries over the period 2002-13. We find ex-ante marginal costs for the median emerging market economy (EME) in the inter-quartile range of 2-5.5 percent per year; while ex-ante total costs (of sustaining FX positions) in the range of 0.2-0.7 percent of GDP per year for light interveners and 0.3-1.2 percent of GDP per year for heavy interveners. These estimates indicate that fiscal costs of sustained FX intervention (via expanding central bank balance sheets) are not negligible.
| Author | : Reuven Glick |
| Publisher | : Cambridge University Press |
| Total Pages | : 382 |
| Release | : 1994-08-26 |
| Genre | : Business & Economics |
| ISBN | : 0521461103 |
This book focuses on the conduct of exchange rate and monetary policies in the Pacific Basin.
| Author | : Banco de Pagos Internacionales (Basilea, Suiza). Departamento Monetario y Económico |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2013 |
| Genre | : Banks and banking, Central |
| ISBN | : 9789291319626 |
| Author | : Gustavo Adler |
| Publisher | : International Monetary Fund |
| Total Pages | : 42 |
| Release | : 2015-06-23 |
| Genre | : Business & Economics |
| ISBN | : 1513534602 |
We study the effect of foreign exchange intervention on the exchange rate relying on an instrumental-variables panel approach. We find robust evidence that intervention affects the level of the exchange rate in an economically meaningful way. A purchase of foreign currency of 1 percentage point of GDP causes a depreciation of the nominal and real exchange rates in the ranges of [1.7-2.0] percent and [1.4-1.7] percent respectively. The effects are found to be quite persistent. The paper also explores possible asymmetric effects, and whether effectiveness depends on the depth of domestic financial markets.
| Author | : International Monetary Fund. Monetary and Capital Markets Department |
| Publisher | : International Monetary Fund |
| Total Pages | : 105 |
| Release | : 2013-12-15 |
| Genre | : Business & Economics |
| ISBN | : 1484366808 |
This is the 64th issue of the AREAER. It provides a description of the foreign exchange arrangements, exchange and trade systems, and capital controls of all IMF member countries. It also provides information on the operation of foreign exchange markets and controls on international trade. It describes controls on capital transactions and measures implemented in the financial sector, including prudential measures. In addition, it reports on exchange measures imposed by member countries for security reasons. A single table provides a snapshot of the exchange and trade systems of all IMF member countries. The Overview describes in detail how the general trend toward foreign exchange liberalization continued during 2012, alongside a strengthening of the financial sector regulatory framework. The AREAER is available in several formats. The Overview in print and online, and the detailed information for each of the 191 member countries and territories is included on a CD that accompanies the printed Overview and in an online database, AREAER Online. In addition to the information on the exchange and trade system of IMF member countries in 2012, AREAER Online contains historical data published in previous issues of the AREAER. It is searchable by year, country, and category of measure and allows cross country comparisons for time series.
| Author | : International Monetary Fund. Statistics Dept. |
| Publisher | : International Monetary Fund |
| Total Pages | : 258 |
| Release | : 2015-01-07 |
| Genre | : Business & Economics |
| ISBN | : 1484350162 |
This update of the guidelines published in 2001 sets forth the underlying framework for the Reserves Data Template and provides operational advice for its use. The updated version also includes three new appendices aimed at assisting member countries in reporting the required data.
